I'm currently using an LCD, Plasma and front Projector system at home and each has advantages and disadvantages. I've experimented with a few rear projection systems in the shops before buying the others and found none of them to be any good (then again, almost none are offered over here, so I only got a look at three models). This is just the result from my own systems, other systems may offer better performance (I was on a limited budget)
*Rear projection systems (€1000)
-The image quality up close is far worse than LCD or Plasma. (fuzzy)
-The light output is horrible when used in daylight conditions (next to large windows)
-Expensive lamp to be replaced every 2000 hours
+ great viewing angle
+ they are cheap for a big sized screen.
*front projection system (€1000)
-expensive lamp to replace (about half the price of a new projector)
-noisy (a fan is used for the cooling)
-image quality up close is fuzzy due to the pixel size, but it is no problem since you watch large screens from a distance)
-needs a dark room to be effective
-color spectrum is somewhat limited when compared to plasma or LCD (only noticeable when placed next to eachother) and in videogames like Jack&daxter when light yellow coloured sand becomes white sand.
+cheap for huge size (I'm using a 4 metre screen)
+power consumption is pretty low considered screen size
+available without tuner so that any video signal can be decoded by whatever hardware you desire and is upgradeable when new formats come around.
+180° viewing angle
*Plasma systems (€2000)
-very few high-definition screens
-lifetime is supposed to be shorter than that of LCD by 1/2 but I've had no problems there.
+inexpensive when compared to LCD for large sizes
+great representation of black (try it in a dark room, black is really black)
+180° viewing angle
+great color representation
+available without tuner so that any video signal can be decoded by whatever hardware you desire and is upgradeable when new formats come around.
*LCD systems(€2000)
-A bit more expensive than plasma for large sizes
-Limited viewing angle (colors inverse when viewed from the sides)
-black tends to become grey when viewed in a dark room
+Available in high-definition
+Long lifetime (thoug mine developed a fault and began showing a purple vertical line (was repaired under warranty)
+great color representation
+available without tuner so that any video signal can be decoded by whatever hardware you desire and is upgradeable when new formats come around.
Personal conclusion, front projection can be used for cinema in a dark room.
Both Plasma and LCD are great everyday TV, especially when coupled with time-shifting external tuner. Don't spend too much money on special filters and effects like interpolation as these can make the image blurry when moving and unnatural with sharp edges when it stands still. But then again, this is a matter of personal taste and it is best to go into a shop where different models are displayed and just watch them. Try looking at the screens from the sides and when turned 90° to them so you can see them from the side of your eyes. In that position flicker becomes noticeable on some screens.
Look for component input (usually blue, red, green) for the screens as well, this is really important if you want to use them for DVD or games.
You might want to invest a little in a surround system with video switching capabilites to make your tv handle all different video formats (cable tv, satellite, playstation/xbox, DVD, Video, harddisk recorder,...) Yamaha and Sony do some sets that offer good value for money.
